FERS is a good deal. I'm glad we have it. Alot of companies don't have pensions anymore. Word to the wise, pay off your debt before retirement and pile up cash in your TSP!
Watching on 11/15/22. SCD -- there are two of them. One for leave and one for retirement. For retirement, it is when you start paying into the retirement system. I was hired as a "permanent, not-to-exceed one year" position and was 'converted' nine months later. Years later after asking for a retirement estimate, I found out those nine months didn't count towards my SCD for retirement. I now have to work 9 months longer than planned. It's not something one realizes is happening....federal government retirement calculations are complicated and it is wise to do a lot of research as early as possible to set yourself up for success in retirement. Great video!
Got 33 years and 4 months total for my FERS Annuity. I retired last September 30th at 64 years old.I'm single, no wife, have Blue Cross Blue Shield Basic, only $170 a month along with Federal taxes. The 4 months was given because of unused sick leave. I'm grateful to have worked for the Federal Government. Just the other day, a former co-worker was discouraged and thought about leaving Federal service. I told her to keep applying to USAjobs and never leave Federal Government. Where else in the United States would you bet the "3 Legged Stool"? Hopefully she'll take my advice.
💯. I’m 29 years 6 months in DOD. I can retire next June at 30 years of service when I’m 58. Now seeing that retiring at 62 will give me That extra 10% (1.1 multiplier) is looking better and better
Excellent video thanks !! I’m 29 years 6 months in DOD. I can retire next June at 30 years of service when I’m 58. Now seeing that retiring at 62 will give me That extra 10% (1.1 multiplier) is looking better and better. Great tip on LWOP not going towards years of service. I didn’t realize that. Unfortunately I have about 200-300 hours. Need to get a final number. This could be an extra 2 months of working so need to be aware of this when I choose my retirement date
When they scanned in my DD214 for my time I bought back for Afghanistan they cut off the bottom part that said it was "Honorable" service so I have to resubmit that. I also did title 32 time before I went title 10 for my Iraq time I bought back, so I have to prove that time is "Honorable" too I am so glad I have copies of everything that I have ever did since I have become a federal employee.
No one has a good video online in regards to Firefighters, Law, and the other one that is in the “Special Category”. I might need to make one myself lol
when you retire they do not give you any details on your high 3 - only their final number. I got a step increase one month prior and didn't calculate. By the time I was adjudicated I'm hoping they got it right but I do have my SF 50's so I can calculate myself. The entire system of individual agencies having their own HR, and then transferring to OPM only at the end of your career just plain sucks. All info during your career should siphon over to OPM so they have up do date info. My Agency also didn't transmit over my military time correctly, and they never gave me a receipt for repayment. My advice to younger employees is to keep every single correspondence from your HR, and if you repaid military time - be sure to get an actual receipt.
@@shaunallen8902 I'm sorry I can't remember the exact name of the system - but you should have an HR system to log into to see all your basic info like timesheets, accrued leave, etc. and there could be a link in there for your SF50's.
So how does someone 50 years old with 19 year 4 months of ferderal Civil service and 11 years of active military service computate a retirement if any?
taxes should be less on the monthly pension on the guys like me that are paying 4.4% vs 3.3% vs the older guys that are only paying 0.8% into the FERS.... Great channel!!
They are expected to combine their pension, with their social security, and the earnings off of investments, after decades of saving. it is referred to as the three-legged stool, three sources of income.
What is the method of correcting an incorrect SCD, in the case of a break in service from moving jobs with a different job in between? Who do we contact to investigate/remedy? Also, is it true that time is time, regardless of full time vs part time status?
Hoping I can still ask a question even though this is from 2020. I'm a nurse that works overnight. Is my shift differential income included in the calculation of my High Three? My base plus my shift differential? I do not get locality.
i'm a letter carrier with usps and we can now use unused sick time, so 39 years and 1 year of unused sick time will give you 40 years. do all federal workers get this?
I am a Fed employee in the Air National Guard. When you say 36 consecutive months, if I work Jan 1, 2024 till Sep 30, 2024 then go on KG (Leave w/o pay) Oct 1, 2024 till Dec 31, 2024, I do this for 2024, 2025, and 2026, will my high 3 include my KG time which is $0?
I understand that. What I’m asking is, if I make 100k from Jan till Sep, KG (LWOP Military Orders) Oct-Dec…. does month 10 start in Jan 2025? Example: Jan-Sep 2024, 9 months, Jan-Sep 2025 18 months, Jan-Sep 2026 27 months and Jan-Sep 2027 total of 36 MONTHS. As far as 36 months being consecutive. Or should I NOT go on orders so that I would look at 133k from Jan-Dec 2024, 133k Jan-Dec 2025, 133k Jan-Dec 2026
Why doesn't TSP Board show their percentage of fees deducted from your account. Seems they are hiding something and seems criminal! Fees should be posted just like credits and debits!
@@johnjoe_247 Don't pretend you have no idea how fees are disclosed on statements, any statement. This transaction hasn't changed in years and I am not talking about how you accept the way tsp halfway disclose fee transactions monthly! Clients shouldn't have to FIGURE IT OUT! Themselves! Get A Clue!
Looked but didn't see anything - can you address the additional I believe 1% added to your retirement if you have had over 2 months worth of worker's comp? What I understood is that this is a little "bonus" to offset the loss of our ability to add to our TSP etc. What do you know about this?
Are you familiar with TVA Employees Federal Retirement? I am asking because all of the videos I have seen you post are nothing like my retirement. For example-my multiplier is .13 x H3 x CST
If you're still wondering, your pension is first calculated. Then your survivor benefits are taken off the top. This is now your gross payable pension. It is taxed for federal and state (if applicable). Then OPM takes out FEHB, any FEDVIP, and any FEGLI and you receive your net.
As a lower paid GS, grades 4-7 over 21 years, my retirement will be about $850 a month and will have a bit of SS to add to it.....but I’ve been saving in TSP the whole time and I’m just over $220,000 in investments... gotta save !!!
$1500 per month is $18,000 per year which will receive future cost of living raises. With the 4% rule of withdrawing earnings from investments, an $18,000 pension is equal to having $450,000 in investment accounts. Plus, you would combine your pension with your SS (assuming FERS), and the money you should have been saving for decades into your TSP and other investments. If there is disgrace for not being in decent financial shape, that would be on you.
@@ddddddno24 There is no insult, it is simply a logical conclusion. We have a 5% employer match on TSP contributions, high pay during the working years, and can maintain our employee health insurance into retirement. In addition, we have a federal pension with COLA, plus SS with COLA, and can get paid for over 400 hours of annual leave at retirement. Most members of the public would love to have that into retirement. If a person is calling that a disgrace, then it's probably not about the federal retirement system.
Great video! One thing you didn’t cover in this video is the effect of part time work on your pension. This affects many women who move to part time during their child rearing years. Your pension gets pro rated by the percent of hours actually worked out of the total that you could have worked. This can be a shocker.
Opm is a great respurce and employees should make sure they are aware of their status with regards to part time full time, seasonal, intermittent, and a big problem is that people need to make sure their current agency has their service computation date correct and that all creditable service hours have been compiled
I'll have to do a video on this but this might help: www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/effect-of-extended-leave-without-pay-lwop-or-other-nonpay-status-on-federal-benefits-and-programs/
@@PlanYourFederalBenefits please do a video on this. I have approximately 250-350 hours of LWOP. I’ll be retiring in about 4.5 years when I hit 62. I want to make sure I have 62 years not 61 and 10 months
I am trying to buy back my military time and cannot get a version of my DD214 that the VA can use. The national archive is shut down, is there another way to get that document? Thanks!
If single, I wouldn’t. You have to decide that at retirement and its a final decision. Without a survivor name, DOB, etc. I don’t think it would go through anyway.
So I have a couple questions: is it true not all states TAX Federal Pensions? Honestly I was unaware that any taxed federal pensions. If you are single can you "decline" the survivor benefits? Also you state people are "shocked" to find their Net monthly pension number is lower. The point here is they have their HEALTH Benefits paid for out of that pension, the rest is gravy. Lastly and this is just a different way to look at the "calculator........1% of high three X years of service Divided by 12. Its a bit easier for those with math issues........lol
You mention locality pay as being inluded in base pay. I've worked overseas my entire career with the GOV. Is overseas compatibility pay included? How about danger pay? Thanks.
So after the government takes all that out of your pension is it really worth working 20 years for them? Maybe if you work 30 plus years than it might be worth it. So basically if you work less than 20 years it’s not worth it.
I saw a note in your presentation that you can use sick leave to push you over the edge to qualify for the 62 years and 20 years bonus (1.1%). Is that true? I was told by another FERS advisory firm that you cannot do that and you physically have to work 20 years in your seat to get the bonus. Please advise.
Just some constructive criticism. We multiply things together. We do not "times them". Otherwise great video! Had no idea about the survivor benefit deduction.
FERS is a good deal. I'm glad we have it. Alot of companies don't have pensions anymore. Word to the wise, pay off your debt before retirement and pile up cash in your TSP!
Great advice!
Too many Corporate CEOs raided the company pension trust and flew out of the country,,,,,,,,,,there was even a movie about it
Watching on 11/15/22. SCD -- there are two of them. One for leave and one for retirement. For retirement, it is when you start paying into the retirement system. I was hired as a "permanent, not-to-exceed one year" position and was 'converted' nine months later. Years later after asking for a retirement estimate, I found out those nine months didn't count towards my SCD for retirement. I now have to work 9 months longer than planned. It's not something one realizes is happening....federal government retirement calculations are complicated and it is wise to do a lot of research as early as possible to set yourself up for success in retirement.
Great video!
Thanks for watching and sharing!
Visuals were very helpful and made it easy to understand. Thanks so much!
You are very welcome!
Got 33 years and 4 months total for my FERS Annuity. I retired last September 30th at 64 years old.I'm single, no wife, have Blue Cross Blue Shield Basic, only $170 a month along with Federal taxes.
The 4 months was given because of unused sick leave. I'm grateful to have worked for the Federal Government. Just the other day, a former co-worker was discouraged and thought about leaving Federal service. I told her to keep applying to USAjobs and never leave Federal Government. Where else in the United States would you bet the "3 Legged Stool"? Hopefully she'll take my advice.
Thanks for sharing!
💯. I’m 29 years 6 months in DOD. I can retire next June at 30 years of service when I’m 58. Now seeing that retiring at 62 will give me That extra 10% (1.1 multiplier) is looking better and better
@@stephendibari5010 Retire and take the SSA kicker
Great video! Best explanation I have come across on the subject of FERS. Thanks!
You're very welcome!
Extremely helpful... the best explanation I've heard going over how to calc retirement... thank you!
One exception: U.S. DOS Foreign Service Employees get 1.7% for their first 20 years, and then 1% for each year thereafter
So do some federal law enforcement officers.
Excellent video thanks !! I’m 29 years 6 months in DOD. I can retire next June at 30 years of service when I’m 58. Now seeing that retiring at 62 will give me That extra 10% (1.1 multiplier) is looking better and better. Great tip on LWOP not going towards years of service. I didn’t realize that. Unfortunately I have about 200-300 hours. Need to get a final number. This could be an extra 2 months of working so need to be aware of this when I choose my retirement date
Glad it was helpful!
Very helpful and Thanks again👍
When they scanned in my DD214 for my time I bought back for Afghanistan they cut off the bottom part that said it was "Honorable" service so I have to resubmit that. I also did title 32 time before I went title 10 for my Iraq time I bought back, so I have to prove that time is "Honorable" too I am so glad I have copies of everything that I have ever did since I have become a federal employee.
Nice work for keeping copies of everything!
A lot of people got hung up over "Member 4" copies of their DD214's. I'm glad I started early and was informed.
Also law enforcement and special services multiply at 1.7 for first 20 years and 1 for anything after 20 years.
Good point, special provisions have different rules.
No one has a good video online in regards to Firefighters, Law, and the other one that is in the “Special Category”.
I might need to make one myself lol
Is speciality pay included? For instance I’m a GS-11 but I’m an RN so I get a special salary rate on top of my base. Thanks in advance
when you retire they do not give you any details on your high 3 - only their final number. I got a step increase one month prior and didn't calculate. By the time I was adjudicated I'm hoping they got it right but I do have my SF 50's so I can calculate myself. The entire system of individual agencies having their own HR, and then transferring to OPM only at the end of your career just plain sucks. All info during your career should siphon over to OPM so they have up do date info. My Agency also didn't transmit over my military time correctly, and they never gave me a receipt for repayment. My advice to younger employees is to keep every single correspondence from your HR, and if you repaid military time - be sure to get an actual receipt.
How do find your SF 50s? Thanks
@@shaunallen8902 I'm sorry I can't remember the exact name of the system - but you should have an HR
system to log into to see all your basic info like timesheets, accrued leave, etc. and there could be a link in there for your SF50's.
In my series $22,500 of overtime is included in the high-3 calculation.
So how does someone 50 years old with 19 year 4 months of ferderal Civil service and 11 years of active military service computate a retirement if any?
Thank you for this thorough explanation.
You're very welcome!
Thank you. I really appreciate this. 🙏
taxes should be less on the monthly pension on the guys like me that are paying 4.4% vs 3.3% vs the older guys that are only paying 0.8% into the FERS.... Great channel!!
I’m LEO. Been told by people retiring, also LEO, that shift pay doesn’t count. On Base, locality and LEO pay. (AUO etc)
THIS ... hopefully we get an answer.
So a GS-13 worker with that works for say NOAA and works rotating shifts... their night time, weekend differential counts in High 3?
I appreciate you going through the numbers. Thank you!👍
Glad it was helpful!
FERS pension is a good deal, if you can get it. I've been retired 5 months and still haven't gotten paid.
On average it takes 6 months for full pay. That’s the Federal Government for you. Outdated system.
Explain what LWOP, AWOL, FMLA, or any other leave affects your retirement.
Out of curiosity? What is a personal expected to be able to do with $900 a month? You can't even pay rent with that, you can buy a happy meal.
They are expected to combine their pension, with their social security, and the earnings off of investments, after decades of saving. it is referred to as the three-legged stool, three sources of income.
Maximize your TSP/ROTH!!! This is why the avg age in America is 62-67 and will possibly be hire for your kids-unless you somehow become a Millionaire-
I'm glad mine was 100% correct.
What is the method of correcting an incorrect SCD, in the case of a break in service from moving jobs with a different job in between? Who do we contact to investigate/remedy?
Also, is it true that time is time, regardless of full time vs part time status?
Hoping I can still ask a question even though this is from 2020. I'm a nurse that works overnight. Is my shift differential income included in the calculation of my High Three? My base plus my shift differential? I do not get locality.
shift differential is not included in the calculation
i'm a letter carrier with usps and we can now use unused sick time, so 39 years and 1 year of unused sick time will give you 40 years. do all federal workers get this?
Yes, most of the time everyone gets it.
I am a Fed employee in the Air National Guard. When you say 36 consecutive months, if I work Jan 1, 2024 till Sep 30, 2024 then go on KG (Leave w/o pay) Oct 1, 2024 till Dec 31, 2024, I do this for 2024, 2025, and 2026, will my high 3 include my KG time which is $0?
Your high three is the highest paid 36 consecutive months. This doesn't have to mean 2024-2026. It could mean any time in your career.
I understand that. What I’m asking is, if I make 100k from Jan till Sep, KG (LWOP Military Orders) Oct-Dec…. does month 10 start in Jan 2025? Example: Jan-Sep 2024, 9 months, Jan-Sep 2025 18 months, Jan-Sep 2026 27 months and Jan-Sep 2027 total of 36 MONTHS.
As far as 36 months being consecutive.
Or should I NOT go on orders so that I would look at 133k from Jan-Dec 2024, 133k Jan-Dec 2025, 133k Jan-Dec 2026
Why doesn't TSP Board show their percentage of fees deducted from your account. Seems they are hiding something and seems criminal! Fees should be posted just like credits and debits!
they show it on the monthly statement , mine was 49 cents for every $1000 in Jan
@@johnjoe_247 Don't pretend you have no idea how fees are disclosed on statements, any statement. This transaction hasn't changed in years and I am not talking about how you accept the way tsp halfway disclose fee transactions monthly! Clients shouldn't have to FIGURE IT OUT! Themselves! Get A Clue!
How do you find out what your taxes are if you live in the state of Pennsylvania
I started in 1987 then stopped working for 9 years..I went back to work in 2009 so the adjusted my scd to 1997..I hope this is correct !
Does one need to take RMD if one continues to work past age 72 yrs
How about the errors for to federal employees that were retired. Can the OPM fix it before somebody file a class action suit? Thanks for the info.
Looked but didn't see anything - can you address the additional I believe 1% added to your retirement if you have had over 2 months worth of worker's comp? What I understood is that this is a little "bonus" to offset the loss of our ability to add to our TSP etc. What do you know about this?
I need to find out about this too..
Are you familiar with TVA Employees Federal Retirement? I am asking because all of the videos I have seen you post are nothing like my retirement. For example-my multiplier is .13 x H3 x CST
Question：For income tax, are your pension taxed at the gross level or the net level? Are the survivor benefits and FEHB premium reductions taxable?
If you're still wondering, your pension is first calculated. Then your survivor benefits are taken off the top. This is now your gross payable pension. It is taxed for federal and state (if applicable). Then OPM takes out FEHB, any FEDVIP, and any FEGLI and you receive your net.
Great video...thanks...Question why is the calculator on EBISS way different then this formula?
Lordie, after working 20 years you get $1500.00, before deductions...and that's if you get to earn $100,000. Disgrace, no? What can $1500.00 pay for?
As a lower paid GS, grades 4-7 over 21 years, my retirement will be about $850 a month and will have a bit of SS to add to it.....but I’ve been saving in TSP the whole time and I’m just over $220,000 in investments... gotta save !!!
No, it comes out to 1833.
$1500 per month is $18,000 per year which will receive future cost of living raises. With the 4% rule of withdrawing earnings from investments, an $18,000 pension is equal to having $450,000 in investment accounts. Plus, you would combine your pension with your SS (assuming FERS), and the money you should have been saving for decades into your TSP and other investments. If there is disgrace for not being in decent financial shape, that would be on you.
@@ChrisWilliams5605LS I thought your comment was great...until the personal insult. Y? Couldn't you just be kind?
@@ddddddno24 There is no insult, it is simply a logical conclusion. We have a 5% employer match on TSP contributions, high pay during the working years, and can maintain our employee health insurance into retirement. In addition, we have a federal pension with COLA, plus SS with COLA, and can get paid for over 400 hours of annual leave at retirement. Most members of the public would love to have that into retirement. If a person is calling that a disgrace, then it's probably not about the federal retirement system.
how many people use GRB? if not then you need to use it.
Agreed!
Does the 10 percent bonus get offset by higher taxes?
Great question. With the 10% bonus, you will likely pay a little more taxes but you will also get more money.
@@PlanYourFederalBenefits that begs the question, then why not take the money asap?
Great video! One thing you didn’t cover in this video is the effect of part time work on your pension. This affects many women who move to part time during their child rearing years. Your pension gets pro rated by the percent of hours actually worked out of the total that you could have worked. This can be a shocker.
Great point!
My understanding is you are credited with YEARS of service not hours. A year is a year no matter if its part time or full time is it not?
Opm is a great respurce and employees should make sure they are aware of their status with regards to part time full time, seasonal, intermittent, and a big problem is that people need to make sure their current agency has their service computation date correct and that all creditable service hours have been compiled
can you explain a little more about how LWOP is figured please, I have 40 yrs approx, approx 6 mth LWOP
I'll have to do a video on this but this might help: www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/effect-of-extended-leave-without-pay-lwop-or-other-nonpay-status-on-federal-benefits-and-programs/
@@PlanYourFederalBenefits please do a video on this. I have approximately 250-350 hours of LWOP. I’ll be retiring in about 4.5 years when I hit 62. I want to make sure I have 62 years not 61 and 10 months
Great overview, but what is the part most mess up? Or, was that just to get people to open the video?
Why does this calculator not have the special provisions multiplier 😪
What exactly is SHIFT PAY? How is it used to calculate High 3 Salary
Shift premium for working afternoons or midnights.
So people who is getting special rate instead of locality pay on retirement time you will not get the whole amount? thats a bit f up....
Thanks Great job
That it was helpful!
I would rather get a part time job to make that difference up then continue to be miserable.
Thanks for sharing!
I feel ya Edward…..🤔
So shift differential does count towards your high 3. OPM told me it did not.
it does not
Thank you for sharing!
You are very welcome!
Very helpful
I work 23 years full time and 12 years part time at 30 hrs a week. How do I determine my years worked??
Check out this article: www.fedsmith.com/2021/03/18/what-working-part-time-does-to-your-retirement/
I am trying to buy back my military time and cannot get a version of my DD214 that the VA can use. The national archive is shut down, is there another way to get that document? Thanks!
I just got mine, depending on the year you got out there are different places. I had to mail mine in to get it.
As a single person do I still need to calculate survivor benefits?
If single, I wouldn’t. You have to decide that at retirement and its a final decision. Without a survivor name, DOB, etc. I don’t think it would go through anyway.
So I have a couple questions: is it true not all states TAX Federal Pensions? Honestly I was unaware that any taxed federal pensions.
If you are single can you "decline" the survivor benefits?
Also you state people are "shocked" to find their Net monthly pension number is lower. The point here is they have their HEALTH Benefits paid for out of that pension, the rest is gravy.
Lastly and this is just a different way to look at the "calculator........1% of high three X years of service Divided by 12. Its a bit easier for those with math issues........lol
Not all state do, just some of them do.
Is the FEHB comparable to what we are paying now?
Yes, but premiums will slowly increase over time.
If I was on LWOP within 5 years of retirement does that disqualify me to continue FEHB in retirement?
What is website with calculator ?
This one should help: hawsfederaladvisors.com/your-fers-retirement-pension-calculator/
You mention locality pay as being inluded in base pay. I've worked overseas my entire career with the GOV. Is overseas compatibility pay included? How about danger pay? Thanks.
Danger pay doesn't count towards high-3 and your compatibility pay does not count either if it considered foreign post differential
Your Base Salary is what is considered. Being overseas is great way to have a higher “High Three”
But does the review go deep? Because I have seen a lot of these videos and frankly, they don’t go deep enough. Sorry if I am calling you out.
Hey John, You make a good point. It would take hours to go really deep.
What’s your podcast name
Haws Federal Advisors
So after the government takes all that out of your pension is it really worth working 20 years for them? Maybe if you work 30 plus years than it might be worth it. So basically if you work less than 20 years it’s not worth it.
YES, because your health benefits are paid for at workers cost. It also matter what age you retire at!
Plus most private pensions keep defaulting on purpose so the board members can steal billions when they dissolve the company
Isn't unused sick leave now added to your years of service?
Yes it does add to your years of service to calculate your pension but not to be eligible to retire.
I saw a note in your presentation that you can use sick leave to push you over the edge to qualify for the 62 years and 20 years bonus (1.1%). Is that true? I was told by another FERS advisory firm that you cannot do that and you physically have to work 20 years in your seat to get the bonus. Please advise.
All these braggers man what about the common folks
Your calculations made me 😢!
Pretty simple math, really.
Their, not There.
Thanks for catching that! I'll fix it.
Just some constructive criticism. We multiply things together. We do not "times them". Otherwise great video! Had no idea about the survivor benefit deduction.
Ugh